State Bank of India (SBI) is a public sector bank in India that has branches across the world. This is the largest bank in the country with about one-fourth of the market share. This trusted bank offers multiple retail banking products and one such retail banking product is fixed deposit (FD) accounts.
FDs are by far the most trusted mode for savings across customers of all age groups due to their guaranteed returns feature. The bank provides attractive interest rates on customers’ deposits over the tenure chosen by the customers.
Here is all that you need to know about FD schemes, interest rates, eligibility criteria, and others.
RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.
The table below shows the interest rates for different FD tenures for deposits below Rs.2 crore, effective from 15th February 2023.
|Deposit Tenure||Interest Rate for Regular Customers (% p.a.)*||Interest Rate for Senior Citizens (% p.a.)*|
|7 days to 45 days||3.00||3.50|
|46 days to 179 days||4.50||5.00|
|180 days to 210 days||5.25||5.75|
|211 days < 1 year||5.75||6.25|
|1 year < 2 years||6.80||7.30|
|2 years < 3 years||7.00||7.50|
|3 years < 5 years||6.50||7.00|
|5 years < 10 years||6.50||7.50|
*Interest rates are subject to change from time to time.
*Note: The rates mentioned here are the highest offered in that year, irrespective of investment period. However, most of these rates are for the 2-3 year investment horizon.
|YEAR||INTEREST RATE (% p.a.)|
Deposit a lump sum in this account and get access to features, such as flexible interest payout option, guaranteed returns, liquidity, and premature withdrawal. The minimum deposit tenure is 7 days and can go up to 10 years. The minimum sum for the deposit is Rs.1,000. Senior citizens can get 0.25% extra interest rate for deposits above Rs.10,000.
Annuity Deposit Scheme
This account allows you to deposit a lump sum in one go and receive the same in equated monthly instalments (EMIs) where a part of the principal is paid back along with the interest on the reducing principal amount. The interest is compounded in quarterly intervals and discounted to the monthly value.
The period of deposit can be 36, 60, 84, and 120 months. The deposit must be made such that the minimum monthly annuity is Rs.1,000 for the chosen tenure. Further, the minimum deposit amount cannot be less than Rs.25,000.
Multi Option Deposit
This type of FD scheme will be linked to your savings/current account. You can withdraw from this account in the units of Rs.1,000 as per your needs. The balance in the account will continue to earn interest as per the initial rate. You can choose a tenure from 1 year to 5 years. The minimum sum to deposit is Rs.10,000.
Motor Accident Claims Annuity (Term) Deposit Account (MACAD)
The account is dedicated to credit the compensation awarded by the court/tribunal to victims/claimants of motor accidents. The credited amount will be paid to the victims/claimants in monthly annuity instalments comprising a part of the principal amount with interest.
The minimum monthly annuity is said to be Rs.1,000 for the specified tenure. The tenure can range from 36 months up to 216 months as stated by the court/tribunal.
The interest earned on this account will only be paid out on maturity, unlike the other schemes where it is paid out on a regular basis. That means interest is added back to the principal and compound interest will be calculated and paid thereon.
The tenure for deposit can range from 6 months up to 10 years. Deposits of Rs.1 crore and above will be considered bulk deposits.
State Bank of India offers ‘SBI Tax Savings Scheme, 2006’ where the minimum deposit amount is Rs.1,000 and in multiples of Rs.100 thereafter. The maximum amount you can deposit in the account is Rs.1.5 lakh. Though the lock-in period for the account is 5 years, the account can have a tenure of up to 10 years. Depositing money in this account will get you income tax benefits under Section 80C of the Income Tax Act, 1961.
Senior citizens get an additional interest rate of 0.5% on the applicable rate. Similarly, SBI staff and pensioners are subject to a 1% additional interest rate on the applicable rate.
Further, the tax will be deducted at source by the bank based on the interest you earn on the FD accounts across the branches of the bank. TDS will be applicable at 10%. It is now reduced to 7.5% due to the pandemic effective between May 2020 and March 2021. You can submit Form 15G/15H to the bank requesting not to deduct tax at source if your annual income is below the basic exemption limit.
If you are planning to invest in an SBI Fixed Deposit, use ClearTax's SBI FD Calculator to calculate the interest rate.
Use our FD calculator to accurately calculate the returns you can expect by depositing money for a specified duration of time.
Yes. Premature withdrawals generally come with a penalty. For deposits up to Rs.5 lakh, a penalty of 0.50% will be applied for all tenures. On the other hand, a penalty of 1% is applied for deposits between Rs.5 lakh and Rs.1 crore on all tenures.
You can get the loan facility on the SBI Tax Savings Scheme, 2006 only after completing the lock-in period of five years subject to the extant instruction of the term deposit/special term deposit.
If you have missed providing maturity instructions while opening an FD account, the account will get auto-renewed upon maturity.
If you withdraw the FD balance before completing the minimum deposit tenure of 7 days, the interest for such a deposit will not be paid.
No. As per the bank’s norms, either two adults or one adult and one minor can jointly open an FD account. No other combinations are eligible.